A shocking new report by the Nigeria Inter-Bank Settlement System (NIBSS) has revealed how fraudsters exploited a loophole in the Bank Verification Number (BVN) enrollment process to steal a staggering N329 million.
The fraudsters, with the help of rogue BVN agents, registered static images instead of real individuals during BVN enrollment.
These fake BVNs were then used to open fraudulent accounts across microfinance banks, mobile money operators, and payment service banks, facilitating the illegal movement of funds.
Investigations showed that some of these fraudulent BVNs were assigned Nigerian names to avoid detection.
The scam was only uncovered after financial authorities noticed suspicious activities and traced the accounts.
Following the discovery, several fake BVNs were deleted, and the agents involved were reported to law enforcement for prosecution.
The NIBSS report also highlighted a sharp rise in financial fraud in Nigeria, with total losses reaching N52.26 billion in 2024—a 350% increase from previous years.
The increase is attributed to more sophisticated fraud tactics, system weaknesses, and high-value cybercrime.
In response, the Central Bank of Nigeria (CBN) has ordered all financial institutions to report fraudulent BVNs within 24 hours of detection to curb further abuse.
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